Which of the Following Is True of Diversification

question 38

Multiple Choice

Which of the following is true of diversification?

• A) It is a substrategy of the retrenchment strategy.
• B) Concentric diversification is diversification into unrelated areas.
• C) It should be adopted by an organization facing major environmental threats with strong internal resources.
• D) It aims to make the product or service unique in its category, thus permitting the organization to charge higher-than-average prices.
• E) An organization that faces positive market opportunities but is constrained by relatively weak internal resources should adopt this strategy.

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Definitions:

Similar Tasks

Tasks that are alike or closely resemble each other in terms of the skills required, processes involved, or the goals to be achieved.

Coordinate

To organize or align different elements in a system or activity so that they work together efficiently and effectively.

Cross-Functional Team

A group composed of members from different departments or areas of expertise working together towards a common goal, fostering innovation and collaboration.

Sales Decline

A decrease in the number or value of products or services sold by a business over a certain period.